Many an entrepreneur has started a business from home. You might recognize some of the more famous names: Jeff Bezos (Amazon.com), Steve Jobs and Steve Wozniak (Apple), Sergey Brin and Larry Page (Google), and Walt Disney (Disney). These men all started their companies from their garages.
In 2013, Small Business Trends reported that 69% of startup and 59% of established businesses were home-based. Even more interesting, the 2012 Global Entrepreneurship Monitor report stated that more than half of U.S. entrepreneurs continued to operate their businesses from home long after they had been established.
There is no stigma in stating that your business is run from home. In fact, there are many smart reasons to continue doing it.
It costs less to get started
The Small Business Trends report indicated a median of $15,000 to start a business from home, and that 82% of these startup funds came from the entrepreneur or their family or friends. It also costs less to run a business from home. Instead of paying a large percentage of income on rent, entrepreneurs can pocket the profit or recycle it back into the business for growth, labor or materials.
The types of business most often run from the home include 41% in the consumer sector, with a mix of Internet, eCommerce, and real estate businesses. Only 33% of home-based businesses fell into the independent contracting, consulting or freelancing space.
It is favorable to women
Among home-based businesses, more than 72% are operated by women and 61% by men. After three years, 68% of women still operated the business from home, while only 53% of the men did. Running a business from the home allows availability to your family.
Age doesn’t matter
Of those seniors who are retired but still working, more than 42% run a home-based business that is more than three years old, and, according to the report, more than 25% want to start a business. Senior entrepreneurs also have advantages not shared by their younger start-ups; they have real-world experience, a well-established network, and may have more cash on hand.
Family members can be incorporated
The Trends report indicated than more than 20% of business owners employed unpaid help or part-time employees. Use this opportunity to incorporate family members or children with age-appropriate tasks. They will enjoy working with you, learn valuable lessons and try various skill sets to discover their own true passions.
You get tax benefits
Depending on your situation, tax savings can be substantial. As long as your home office is your principal place of business, you may be able to deduct a portion of the home’s expenses including mortgage interest, property taxes, maintenance, utilities and repairs (consult your local tax rules).
There’s no commute
The average commute in the United States is 45 minutes, which can add up to more than 200 hours a year spent in traffic at a cost of $2,600, according to Citi’s ThankYou Premier Commuter Index. This time and money can be spent on revenue-producing activities.
You set your own hours
We all have biological rhythms; times when we are more productive than others. Working from home allows you to set your own schedule and work when it is best for you. You can also schedule client meetings and family activities at times convenient to you.
Having the freedom to design your own company and working hours is a vision most workers can only dream of. Lucky you, you’re living that dream, and can continue to prosper in both business and personal directions, all while enjoying the benefits your home can provide.